by The global Location-Based Services Market is estimated to be valued at US$32,210 Million In 2022 and is expected to exhibit a CAGR of 18.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Location-based services (LBS) refer to a technology that utilizes geographic data to provide real-time information about the location of a person or an object. These services offer various advantages such as personalized advertising, improved navigation, and enhanced safety and security. The increasing need for real-time location tracking in industries like healthcare, logistics, and retail is driving the demand for location-based services.
Market Key Trends:
One key trend in the location-based services market is the growing adoption of indoor positioning systems. Indoor positioning systems use various technologies such as Wi-Fi, Bluetooth, and beacons to track and locate individuals and objects indoors. This technology is particularly useful in environments like shopping malls, airports, and hospitals, where GPS signals may be unreliable. The demand for indoor positioning systems is expected to increase as businesses look for ways to improve customer engagement and enhance operational efficiency within indoor spaces.
Porter’s Analysis
Threat of New Entrants: The threat of new entrants in the location-based services market is relatively low. This is due to high entry barriers such as the need for significant capital investment, complex technology infrastructure, and the need for established networks and partnerships. Additionally, existing players in the market have already captured a significant market share, making it difficult for new entrants to compete.
Bargaining Power of Buyers: The bargaining power of buyers in the Location-Based Services Market is moderate. While buyers have a wide range of choices when it comes to location-based services providers, they are also highly dependent on these services for their operations. This gives them some leverage in negotiating prices and service agreements, but not enough to significantly impact the market dynamics.
Bargaining Power of Suppliers: The bargaining power of suppliers in the location-based services market is relatively high. This is mainly due to the fact that the market relies heavily on technology infrastructure and software solutions, which are provided by a limited number of suppliers. As a result, suppliers have the leverage to dictate terms, pricing, and delivery schedules.
Threat of New Substitutes: The threat of new substitutes in the location-based services market is low. Location-based services have become an integral part of various industries such as transportation, logistics, healthcare, and retail. The accuracy and real-time nature of these services make them highly valuable and hard to replace with alternative solutions.
Competitive Rivalry: The competitive rivalry in the location-based services market is high. The market is dominated by a few key players who have established a strong presence and customer base. As a result, there is intense competition among these players to innovate, offer differentiated solutions, and retain their market share.
Key Takeaways
The global location-based services market is expected to witness high growth, exhibiting a CAGR of 18.7% over the forecast period from 2023 to 2030. This strong growth can be attributed to the increasing adoption of location-based services across various industries. For example, in the transportation sector, location-based services are being used for fleet management, route optimization, and driver tracking, leading to improved operational efficiency and cost savings.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the location-based services market. This can be attributed to the presence of major players in the region, technological advancements, and the high adoption rate of location-based services by industries such as retail, healthcare, and transportation.
Key players operating in the location-based services market include GuardRFID Solutions Inc., ALE International (Nokia Corporation), Favendo Gmbh, Teldio Corporation, CenTrak, Cisco Systems Inc. (Cisco Meraki), AiRISTA Flow Inc., Creativity Software Ltd., IBM Corporation, DigitalGlobe Inc. (Maxar Technologies), Aruba Networks (HPE Development LP), Ericsson Inc., HERE Global BV, IndoorAtlas Ltd., GL Communications Inc., and Esri Inc. These players have a strong market presence and offer a wide range of location-based services solutions to cater to the diverse needs of industries.
In conclusion, the location-based services market is poised for significant growth in the coming years, driven by the increasing adoption of these services across industries. The market is highly competitive, with key players vying for market share through innovation and differentiation. North America is expected to lead in terms of growth and dominance in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
